A viral rumor claiming a Hong Kong-based shell company made a secret $436 million investment in Bitcoin through BlackRock's iShares Bitcoin ETF (IBIT) as a covert move by Beijing to bypass China's crypto ban has been debunked. The investment was actually made by Abu Dhabi's sovereign wealth fund, Mubadala Investment Company.
Despite the false narrative, the story highlights a real trend: Hong Kong firms are actively increasing Bitcoin ETF exposure. For instance, Avenir Group's holdings in IBIT reached $688 million by March 2025. Hong Kong's pro-crypto regulatory environment contrasts sharply with mainland China's restrictions, positioning it as a hub for regulated Bitcoin access.
Concurrently, U.S. spot Bitcoin ETFs experienced $104.9 million in net outflows on Tuesday, February 18, 2026. Total trading volume plummeted to just over $3 billion, a nearly 80% drop from the record $14.7 billion seen on February 5, indicating a significant slowdown in activity.
The outflows coincided with the release of Q4 2025 institutional holdings reports. While Jane Street emerged as the second-largest buyer of IBIT with a $276 million purchase, a new and mysterious entity entered the scene. A Hong Kong-based company named Laurore, with no public footprint, reported a single $436.2 million acquisition of IBIT shares to the SEC. The filer's name, Zhang Hui, is a common Chinese alias, fueling speculation.
Bitwise Investments advisor Jeff Park suggested this could be an early sign of institutional Chinese capital entering Bitcoin, potentially linked to capital flight. However, analysts caution against conflating private investment with state action.
Other notable Q4 2025 moves included: Weiss Asset Management adding ~$107.5 million in IBIT, 59 North Capital increasing its position by ~$99.8 million, and Mubadala boosting its holdings by 45% to $630.7 million. In contrast, Brevan Howard slashed its IBIT holdings by roughly 85% (from $2.4B to $273.5M), and Goldman Sachs trimmed its position by about 40%, leaving around $1 billion.
